Question 1

Online campaigns would work for high-involvement goods whose buyers engage in
product research and price comparisons.

Accepted Answer

Online campaigns can provide buyers with the necessary information and resources to conduct research and compare prices, which is more common among high-involvement goods. Therefore, online campaigns can be effective for these types of products.

Question 2

Banner advertising is not used in Internet advertising.

Accepted Answer

Banner advertising is indeed used in Internet advertising, where ads are displayed as banners on websites or social media platforms.

Question 3

The Internet is not helping companies to create global brands.

Accepted Answer

The Internet has enabled companies to reach audiences all over the world and has made it easier for them to establish global brands.

Question 4

Mass customization is not the major plus of the Web.

Accepted Answer

The ability to offer mass customization is considered one of the major advantages of the Web. This is because the Web allows businesses to gather data on each individual customer and tailor their products or services to meet their specific needs and preferences, which can lead to increased customer satisfaction and loyalty.

Question 5

There are many unsolved issues in the Internet. For example, e-commerce is global
but the national laws are mostly transnational.

Accepted Answer

E-commerce is indeed global, but national laws are not mostly transnational; instead, they are primarily national or local in scope, which can create challenges for global e-commerce due to differing regulations across countries.

Question 6

It is estimated that most of the Internet advertising spending will be spent in Japan.

Accepted Answer

While Japan is a significant market for internet advertising, it is not estimated to be the top spender. The United States is currently the largest market for internet advertising spending.

Question 7

Discuss some of the ramifications of the Internet for global marketing strategies. Also explain some of the challenges faced by international marketers in the areas of global branding and Internet-based new products.

Accepted Answer

The answer of Discuss some of the ramifications of the...

Question 8

In international distribution, replacement effect does not cannibalize existing distribution channels.

Accepted Answer

Replacement effect in international distribution can cannibalize existing distribution channels if the new channel directly competes with or takes sales away from the existing channels, leading to a reduction in their sales volume or market share.

Question 9

The Internet has leveled the playing field between large and small firms in global
competition.

Accepted Answer

The answer of The Internet has leveled the playing field...

Question 10

Web sites enable companies to manage perishability.

Accepted Answer

By selling products or services online, companies can better manage their perishable inventory by tracking sales in real-time and adjusting pricing or promotions as needed to move inventory before it expires.

Question 11

Consumer co-creation involves customers in value creation.

Accepted Answer

Consumer co-creation is a process where customers are involved in the creation of new products or services, or in the improvement of existing ones. This collaboration between companies and customers can result in more innovative and relevant products that meet the needs of the market.

Question 12

In many industries, connectivity means that existing channels can be bypassed by
connecting buyers and suppliers directly.

Accepted Answer

Connectivity allows for direct communication and transactions between buyers and suppliers, which can bypass traditional channels such as middlemen or distributors. This can lead to increased efficiency and cost savings for both parties involved.

Question 13

Keyword search advertising allows the company to have a link to its competitors.

Accepted Answer

Keyword search advertising primarily enables a company to display its own ads in search engine results when specific keywords are searched, not links to its competitors.

Question 14

Microsites are used to promote a particular brand.

Accepted Answer

Microsites are specifically designed to promote a particular brand, product, event, or campaign. They are separate entities from the main website and focus on a specific topic or message.

Question 15

Describe briefly the history of the Internet. Which nations are becoming prominent among Internet users? How does their growth compare with the Internet readiness shown in Exhibit 19-2?

Accepted Answer

The answer of Describe briefly the history of the Internet....

Question 16

Google is the #1 search engine throughout the world.

Accepted Answer

The answer of Google is the #1 search engine throughout...

Question 17

For global marketers, the Web could affect the firm's high margins because of price transparency.

Accepted Answer

The Web provides consumers with easy access to information about prices and products, making price comparisons more transparent, which may lead to firms' high margins being affected.

Question 18

Asians have the most favorable attitude toward Internet shopping.

Accepted Answer

Attitudes toward Internet shopping can vary widely among individuals and are influenced by numerous factors including personal experiences, cultural background, accessibility, and trust in online transactions. There is no definitive evidence to suggest that Asians as a whole have the most favorable attitude toward Internet shopping compared to other groups.

Question 19

Although global e-commerce is expected to increase, it has encountered obstacles and structural barriers. Discuss these structural barriers.

Accepted Answer

The answer of Although global e-commerce is expected to increase,...

Question 20

In international marketing, a Web site gives service marketers the ability to offer 24 hour service to customers worldwide.

Accepted Answer

A Web site can provide service to customers around the clock, regardless of their geographical location, allowing service marketers to offer 24 hour service worldwide.

Quiz 19: Global Marketing and the Internet

Online campaigns would work for high-involvement goods whose buyers engage in product research and price comparisons.